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Labor law
in Taiwan (China).

SALARY PAYMENT IN New Taiwan dollar (TWD, NT$, $)

CONTRACT LANGUAGES Chinese / English

PAYROLL TAX 17.152%

PAYROLL CYCLE Bi-weekly or monthly

TIME TO HIRE 12 hours

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Taiwan

    Labor law in Taiwan (China)

    Taiwan has some fairly comprehensive labor laws , covering areas such as minimum wages, working hours and holidays, notice periods, safety conditions and severance payments.

    The key piece of legislation in Taiwan labor law is the Labor Standards Act (LSA). It serves as the primary legal framework governing labor relations, working conditions, and employee rights and protections in Taiwan.

    The LSA covers the minimum requirements for employment contracts, working hours and rest periods, how wages are set, leave and holidays, labor disputes and worker health & safety. 

    Notice period laws in Taiwan

    Dismissals in Taiwan (China)

    The minimum notice periods in Taiwan are based on the length of employment:

    • 0 to 3 months employment: there is no minimum notice, but the standard is 7 days.
    • 3 months to 1 year employment: a minimum of 10 days.
    • 1 to 3 years employment: a minimum of 20 days.
    • Over 3 years employment: a minimum of 30 days.

    Payment in-lieu of notice must be paid for immediate terminations. There are a limited set of circumstances where employment can be terminated with no notice or severance pay.

    Resignations in Taiwan (China)

    There is no requirement in Taiwan for employees to give a minimum notice period when resigning, unless such a stipulation exists in the employment contract. Still, one month’s notice is standard when an employee resigns.

    Severance laws in Taiwan (China)

    Taiwan’s severance laws have clear regulations for the payment of severance to employees that are terminated for any reason other than a limited set of circumstances. For each year of employment, employers must pay a minimum of one month’s salary as severance. The maximum amount of severance payable cannot exceed six months’ salary in total.

    Employers are strongly encouraged to pay out this severance to dismissed employees in all cases.

    Hiring in Taiwan (China), Made Easy

    Your business can easily hire employees in Taiwan (China) without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

    FAQs

    The Labor Standards Act (LSA) is the main piece of employment law legislation that sets the baseline for employment conditions in Taiwan. It applies to all industries and occupations, with a limited number of exceptions, ensuring most employees have standardised basic rights that are governed under law. Foreign nationals working in Taiwan are also covered by these laws.

    Other important pieces of legislation include the Gender Equality in Employment Act (prohibiting workplace discrimination and ensuring equal opportunities based on gender), the Trade Union Act (dealing with collective bargaining), and specific legislation dealing with pensions, health insurance and labor insurance. 

    Yes, it is possible to terminate an employee during the probationary period. There is no minimum notice if the employee has not been employed for more than three months. However, it is standard to provide seven days’ notice. You will need to give the appropriate notice for the length of employment if the employee has been employed for longer than three months.

    Yes, employees can terminate their employment during the probationary period. They do not need to provide any notice if the employment period has not exceeded three months. However, they should give the appropriate amount of notice for the length of employment if they have been employed more than three months.

    After the probationary period, terminating an employment contract in Taiwan requires following specific guidelines set by the LSA. Employees must be given notice and severance pay except in a limited set of circumstances.

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